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Last Updated : Oct 21, 2020 03:01 PM IST | Source: Moneycontrol.com

Hindustan Zinc share price gains 3% post September quarter earnings

The board of directors of the company at its meeting held on October 20, 2020, have approved an interim dividend of Rs 21.30 per equity shares for the financial year 2020-21 amounting to Rs 9,000 crore.

 
 
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Hindustan Zinc share price gained 3 percent in the morning session on October 21 after the company declared its September quarter results.

The Vedanta group firm on October 20 reported a 6.7 percent drop in net profit to Rs 1,940 crore for the quarter ended on September 30, 2020, due to high expenses. The company had posted a net profit of Rs 2,081 crore in the year-ago period, HZL said in a filing to BSE.

However, total income of the company increased to Rs 6,050 crore in the July-September period from Rs 5,101 crore in the year-ago period. Total expenses of the company during the quarter increased to Rs 3,428 crore from Rs 3,014 crore in the year-ago period.

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The company's mined metal production for the quarter was up 9 percent Q-o-Q to 2,38,000 tonnes on account of higher ore production.

The stock was trading at Rs 231.85, up Rs 8.70, or 3.90 percent at 03:00 pm. It touched an intraday high of Rs 235.80 and an intraday low of Rs 226.50.

Hindustan Zinc also announced a dividend of Rs 21.30 per share. "The board of directors of the company at its meeting held on October 20, 2020, have approved an interim dividend of Rs 21.30 per equity shares for the financial year 2020-21 amounting to Rs 9,000 crore," the company said in an exchange filing.

Citi has retained buy rating on Hindustan Zinc with target at Rs 240 per share. It is of the view that the Q2 earnings were in-line, according to a CNBC-TV18 report.

EBITDA was up on higher zinc-silver rupee realisations and lower costs. Higher volumes have also aided EBITDA with silver accounting for 22 percent of Q2 revenue.

Credit Suisse has maintained outperform call with target at Rs 250 per share. It is of the view that given liquidity needs of parent, expect the company to maintain high dividends adding that elevated silver prices and improving metal volumes should aid profitability.

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First Published on Oct 21, 2020 03:01 pm
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